EUR/GBP Seems Set to Extend Last Week Gains

EUR/GBP Seems Set to Extend Last Week Gains

2 May 2016, 08:02
Roberto Jacobs

EUR/GBP Seems Set to Extend Last Week Gains

The EUR/GBP pair surged past 0.7800 handle on Friday and adding some more weight to 0.7855 on Monday has retraced a bit to dip below 0.7850 level.

The pair has been witnessing corrective move from April highs and now seems to found strong support near 0.7735-30 area. Also, any attempts of recovery were finding it difficult to break through 0.7800 mark, which has now been decisively conquered. Hence, from current levels the pair seems poised to extend its near-term recovery.

Technical levels to watch

A follow-up buying interest should continue to boost the pair immediately towards 0.7875 horizontal resistance, which if cleared opens room for a test of 0.7920-25 horizontal resistance.

On the downside, 0.7832-30 zone now seems to provide immediate support. Any subsequent weakness below this immediate support is likely to get extended, dragging the pair back towards an important resistance handle break-point now turned immediate support near 0.7800 region.


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